Profit at St James’s Place up on turmoil
THE chief executive of St James’s Place has said many FTSE-listed firms are undervalued, as the upmarket wealth manager reported a rise in profits and its dividend.
“There has been a disconnect between the fundamental value of companies and their share price … 2011 was not a good year for markets,” David Bellamy told City A.M.
He was speaking as St James’s said a 10 per cent net inflow of funds under management during 2011 had helped boost operating profit by 12 per cent to £371.5m.
The firm’s clients, largely high net worth individuals, face more challenges in managing their money as they live for longer and see asset income hit by record low interest rates.
St James’s, majority owned by taxpayer-backed Lloyds Banking Group, increased its annual dividend by a third and indicated a similar hike will follow for performance in 2012.
The firm also said funds under management have grown to £29.5bn at the end of January, up £1bn from the end of 2011.
“While mindful of the difficult economic conditions that persist, we have a good platform for further growth in new business in 2012 and we remain confident of achieving our medium term growth objectives,” Bellamy said.
St James’s has also appointed Patience Wheatcroft, the Tory peer and former editor of The Sunday Telegraph, as an independent non-executive director. She previously served at Barclays.
St James’s profit before shareholder tax rose 30 per cent to £109.7m.